Will I have money until I die?
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Anonymous
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Age: 57
Unemployed and given up getting a job $1.4 million invested, 75% total stock fund, 25% total bond fund Taking out (selling) $90,000 annually Will I run out of money before I die? |
Anonymous
| That probably depends on when and how you die, and your expenses and QOL expectations while you're still living. |
Anonymous
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Are you healthy? Do you have children? Is your house paid off? I would move to a lower COL area and one with the least investment taxes.
I don't know much about investing but seems that your mix is more volatile if you don't have other income. At 90k per year if you don't make significant gains on the capital you're looking at 14 years in which you will spend your capital. |
Anonymous
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Sure hope that $90k is supporting a family, not just for you yourself.
+1 to PP, get out of DC to a lower cost of living place, and you can do better. And probably switch your asset allocation to something at least somewhat less risky. |
Anonymous
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There is some research that points to 4% as a reasonable long term withdrawal rate, but that would be more like 55k for you.
Also +1 to making your portfolio a little safer. |
Anonymous
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According to firecalc, if you live to age 87 you have a 43% chance of having enough.
57% chance of running out. Can you spend less? http://www.firecalc.com/ |
Anonymous
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Yes, you will likely run out of money before you die. 3 or 4 percent is a safer amount to withdraw.
The economy is improving; try to get a job. |
Anonymous
| Can you get a part time job or move somewhere very inexpensive if you don't want to work ( even perhaps abroad)? |
Anonymous
| How much Social Security will you get at various starting ages? |
Anonymous
OP here. Thanks for the suggestions. Yes, I'll look at spending. The job search. I'm feel utterly defeated. I agree the economy is getting better. S l o w l y. |
Anonymous
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Anonymous
I am sorry. Ideally you should not withdraw more than 3 or 4 k a month from your portfolio at your age. If you could close the gap with another 2 or 3000 in earnings that would do it, if you cut spending too. Part time work is a good idea - you could earn 20 bucks an hour doing 3 or 4 hours a day of after school care, for example. What are your skills? What are you spending 90k/year on? |
Anonymous
| Remember, you don't need to earn back all of your salary to survive, but you can stretch your savings by getting kind of part time job. You want to spend that much, think about what kind of dent you'll make in the downward trajectory if you just get a small job to earn your "walking around/fun money". My parents are retired and my dad freelances a bit to get out of the house and they pay for their vacations with that money. They pay the bills out of their SS, small pension, and investments. |
Anonymous
Take a look at this: http://www.marketwatch.com/retirement/tools/retirement-planning-calculator I punched in your numbers, and you'll go broke taking out 90K. It says you can take out 67K per year if your last salary was ~50K and 70K per year if your last salary was ~150K (differences in SS payout) That's assuming a 5% return. |
OTAlexFA
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| Do you have long-term care insurance in place? If not, and you eventually require care, you'll burn through that money quickly. |